Women-owned and women-led businesses are on the rise in the U.S. as well as in the ARM industry and are banding together to provide support and networking resources.
8/9/2021 8:30
Women-owned and women-led businesses are growing in the accounts receivable management (ARM) industry and remain a big part of the conversation at the congressional level and within the U.S. Small Business Administration (SBA).
According to SBA Small Business Facts released in August, there are 1.1 million women-owned businesses with 10.1 million employees. Most women-owned businesses are small, according to the SBA.
In the ARM industry, women make up a high percentage of collection agents when compared to the overall workforce, according to research from ACA International in partnership with Kaulkin Ginsberg.
Data provided by the Bureau of Labor Statistics’ Current Population Survey, which studies trends in the labor force, shows 66% of bill and account collectors identified as female in 2020. In contrast, women made up just 47% of total workers.
We recently spoke with members and business owners about their experiences and challenges as leaders in the ARM industry, including during the pandemic. These issues were also recently discussed during a House Small Business Subcommittee on Economic Growth, Tax, and Capital Access hearing, “Reversing the Decline in Women Entrepreneurship: Opportunities for Rebuilding the Economy.”
“All businesses face unique challenges. Without a concerted effort to promote knowledge and awareness, some of the more specialized challenges associated with women business enterprises, historically underutilized businesses, and small business enterprises, firms may inherently remain further from the forefront of public understanding,” said Kathy Ryalls, President and CEO at RGS Financial Inc., which is certified as a Texas historically underutilized women-owned business. “To ensure that adequate support is available for similar businesses in need, there will always be an underlying urgency to offer clarity into the stakes involved for smaller businesses and their unique challenges.”
During the House Small Business Subcommittee hearing, members of Congress discussed the impact of the pandemic on women-owned small businesses and ways to support women entrepreneurs, workers and small-business owners.
Courtney Reynaud, president of Creditors Bureau USA and ACA’s president-elect, is the third generation to own and operate her company. Reynaud and her husband purchased Creditors Bureau USA in 2017.
“It’s hard to tell if the pandemic impacted our small business because we are women-owned,” Reynaud said. “That being said, our office workforce is 90% women. The largest impact from the pandemic I faced personally, as well as my staff, was school closures and childcare. Most of my staff have young, school-aged children and because the schools and childcare were closed for most of 2020 and 2021, we had to think outside of the box to find solutions to keep our team members working while still allowing them time to educate and care for their children.”
Before Reynaud and her husband purchased the company, her mom was the majority shareholder from 1984-2017. Before that, her great aunt Linda Kempen owned the business, which she started with her husband Bob Kempen. They owned and ran the business from 1935 to 1984, Reynaud said.
California’s laws have presented some challenges for Reynaud to join the ranks of certified women-owned businesses.
“I have been unable to qualify as a certified women-owned business because my husband and I are married, and California is a community property state,” Reynaud said. “Because of this, my husband and I are considered 50/50 owners. I would like Congress to allow businesses like mine to qualify for women-owned status. I would also like to see women-owned, and minority-owned small businesses prioritized in access to grants and other available programs, like the Paycheck Protection Program and Economic Injury Disaster Loans.”
These obstacles have presented challenges for Reynaud and her business, such as trying to obtain a PPP loan.
“It was an extremely stressful time because we were forced to close our offices completely in March 2020,” Reynaud said. “As a small-business owner, I worked around the clock to keep the business afloat.”
While California does not offer the option to be a certified women-owned business, Reynaud has found other support systems.
Women’s groups as like the Chamber of Commerce and Women in Collection Resource Council (WICRC) as well as other association groups specific to your industry are excellent resources, Reynaud said.
ACA’s leaders are also working together to provide resources and networking for women leaders and business owners in the ARM industry.
The Women in Collections Resource Council (WICRC) at ACA has grown in recent years as a way for women leaders to connect and learn.
The group met at ACA’s Convention & Expo last month in Las Vegas with special guest Linda Russell, the first woman to be elected ACA president. The debt collection agency she ran for 45 years—CollectionCenter Inc., based in Rawlins, Wyoming—was started by her father, Clyde Cox, in 1919. Russell received the inaugural Linda Russell Leadership Achievement Award this year.
Convention Keynote Amy Vetter also visited the WICRC meeting, sharing words of wisdom on being a woman leader in business and mentorship opportunities.
Ryalls shared other resources that are available for women in business.
“There are currently some great foundational programs to continue maintaining and building upon, such as the Women-Owned Small Business federal contracting program and the open-ear approach to the research of the National Women’s Business Council,” Ryalls said. “A continued support and open-mindedness toward the necessity of such programs will continue to help businesses like ours.”
Members of the WICRC on The Hub or interested members may reach out to ACA staff liaison Kelli Krueger, director of education, [email protected] for guidance on topics to discuss or other questions.
You can read Universal Fidelity LP CEO Jessica Hearn’s experience obtaining a women-owned business certification in this recent Collector magazine article.
Pictured above, Convention keynote Amy Vetter talks with ACA International member Chelsea Trieb, corporate operations manager at KG Hawes, during the WICRC meeting at the 2021 Convention & Expo.